Venture capital funding of indoor farming companies dropped 91% in Q1 of 2023 compared with Q1 of 2022 (deal value). The deal count in the same time period dropped 70%, from 46 deals in Q1 2022 down to 14 deals in Q1 2023.
Rising energy costs and rising interest rates are both hurting indoor farming profits. Energy costs have been rising due to the war in Ukraine, supply chain issues, and electrification stresses on the electricity sector. Five indoor farming companies have already folded this year (since 1/1/23), including Future Crops and Kalera.
There have been some notable successful raises. Plenty raised $400 million Series E in January 2022. Gotham Greens plans to triple its production capacity, having closed its $310 million Series E in September 2022.
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